Canada 2019-03-15T19:47:29+00:00


Canadian Company

Canada is the second country in size after Russia. It consists of 3 territories, divided into 10 provinces. The population of 34 million is increasing, 90% of the population lives in 180 kilometers from the United States border. Natural resources excess: iron ore, nickel, zinc, lead, wood, water. The capital of Canada is ONTARIO, here is the list of the largest cities: Toronto, Montreal, Calgary, Edmonton, Winnipeg, Halifax and Vancouver.

Canada gained its autonomy in 1867. The head of the country-Queen Elizabeth, the Governor General is appointed by the Queen, the Prime Minister appoints the Cabinet, Parliament divided into two Cabinets-the Executive and the Senate (elected). Three main parties: Conservatives (rule now), Liberals and the New Democratic Party.

Background on Canada

Population: 34 million and growing

10 provinces and 3 territories

Capital: Ottawa in Ontario

Self governing since 1867

Queen Elizabeth is Head of state, Prime Minister appoints cabinet, Governor General appointed by HM, House of parliament divided into Cabinet (executive)and Senate (elected)

Three major political parties, Conservatives (in office), Liberals and New Democratic Party

2nd largest country after Russia

Abundance of natural resources: iron ore, nickel, zinc, lead, timber, water

90% of population lives within 100 miles of US border

Largest cities: Toronto, Montreal, Calgary, Edmonton, Winnipeg, Halifax and Vancouver

Why Canada?

  • On the one hand, in Canada is the low corporate tax (15% on the first $500 000 income) and, on the other hand, the biggest economic growth in the Big Seven. Canada is considered to be one of the three most promising countries for investment.
  • Unlike the United States, the law rules in Canada, and there is no need for extra agreements with legal services to enter into agreements or contracts. It is quite simple to open a company in Canada with the help of professionals.
  • Canadian companies are recognized with respect throughout the world and are very conveniently located for the supply of goods and services in North America.
  • Canada is politically stable, competitive and productive country.
  • Canada is the only country whose Government did not need to save it from the recent crisis.
  • Many people are interested in starting a company in Canada, because Canada does not have the image of offshore. There are no offshore companies in Canada. But in many cases, you can achieve the similar result as if using classical offshore-there are no taxes in Canada and is lack of requirements for filing annual statements for certain types of companies in Canada.
  • Canada has the lowest business taxes in G7
  • Canada currently has the highest economic growth in G7
  • Ranked one of the top three countries worldwide to invest into
  • Unlike the US, Canada has a “rule of law”, not needing excessive legal counsel to reach agreements and draft contracts
  • Canadian corporations are respected world-wide and very well suited to market goods and services in North America
  • Canada is politically stable, competitive and productive
  • Canada has the strongest fiscal position now in the G7
  • Canada was the ONLY country not needing a bail out by it’s government from the recent recession


Different types of Canadian Companies

Federal : Canada

Provincial : within a province

EPC : registration of a corporation from outside a Province

Limited Partnership : provides international clients benefits of prestigious jurisdiction and partnership taxation!!!

Federal Companies in Canada

Heightened name protection across Canada

Can carry on business anywhere in Canada (but may need to pay separate licence fees in provinces where you do business)

Slightly less expensive to register

25% of Directors must be Canadian

Option to have numbered company or named one

Provincial Companies in Canada

NO residency requirement for Directors in British Columbia, New Brunswick, Nova Scotia, Prince Edward Island and Quebec but need local registered agent

Ontario, Manitoba, Newfoundland and Alberta require 25% resident Directors on board, Saskatchewan requires majority

Allows you to operate your business within selected province

EPC in Canada, Extra-Provincial Corporation

  • An application for a license to carry out business within a specified province
  • No residency requirements for Directors
  • No tax on the company’s income derived outside Canada
  • Acts like a branch because you need the main company, which will register the EPC in Canada. This may be an offshore.
  • Popular in Europe to market goods and services in North America


What are the EPC registration advantages?

  • On the one hand it is similar to any other offshore company, because there is no tax on profits obtained outside of Canada, and, on the other hand, any COMPANY can be registered as EPC.
  • EPC can open an account in a Canadian bank and to open an Office to manage the Affairs in the United States and other countries.
  • There are no citizenship requirements for directors, employees and founders.


Advantages of an EPC registration in Canada

It is like an offshore company, no tax on income outside Canada

BVI and any other offshore companies can be registered as an EPC

The EPC can obtain a Canadian bank account and open an office to conduct business in North America

No residency restrictions on directors, shareholders or officers.

Limited Partnership in Canada

Canadian Limited Partnerships (LP) becoming more popular for international business. More information on LP in Canada can be found in dedicated Article: Canadian LP


Benefits of partnership in Canada

  • Canadian company (in the form of partnership) a high prestige company
  • There are no restrictions on the residence of partners, when registering a Partnership in Canada
  • There is a possibility to create a Canadian partnership, consisting of one natural or legal person, which in this case is the General and the limited partner.
  • There are no requirements of the size of the authorized capital.
  • There is no tax on profits earned outside Canada, as well as income tax, since all profits received by Canadian Partnership are distributed among the partners, which are responsible for it in the countries of their residence. If they are not Canadian citizens, then there are no TAX OBLIGATIONS in Canada.
  • There is no need to pass a tax return and audit.
  • The annual meeting is not required.

Partnership requirements in Canada

  • The title should necessarily include an indication of the legal form of the words “Limited Partnership” or “LP”.
  • If Partnership founder is a physical person, then under Canadian law (Ontario), it can be both General and limited partner in one person, allowing to register a Partnership with ONLY ONE PHYSICAL PERSON who may be resident in any country.
  • If a partnership in Canada is being registered by legal persons then at least one general partner and one limited partner are required. If parent company is incorporated outside of Canada, for the appointment of general partner, you must first register it in Ontario as an EPC (Extra-Provincial Corporation). Limited partner, may be any natural or legal person, the resident of any country. If the limited partner is not a Canadian firm than there is no need to register it as the EPC.
  • Management is carried out by the partner. Partnership Agreement can provide the right for the general partner to appoint a Manager.
  • Responsibility-general partners have full responsibility for debts and obligations of the Partnership. Limited partners are accountable only to the size of its contribution to the Partnership.
  • Requires a registration office in Ontario, where copies of all resolutions of partners and a copy of the partnership agreement are stored. The address of the registration office also receives official correspondence. Registered office includes a registration kit.

How to register a company in Canada?

  • Call us and arrange a meeting with a representative of the LowTaxCompany in your city or to arrange the process of opening a company in Canada.

LowTaxCompany.COM team will help you with different type of companies incorporation in Canada. Use contact form for free consultation now!